ZCash [ZEC] made an impressive move in the past 24 hours, as the privacy token once again attracted investor interest.
At press time, trading volume reached $744 million, with the asset surging over 11% in a single day, maintaining nearly a 1,000% gain over the past year.
While some may view these gains as temporary, given market conditions, chart developments indicate further upside is still likely.
Ecosystem development has been a key factor in ZCash’s recent price boost. The privacy blockchain has expanded token utility, giving holders direct access to multi-chain yield opportunities with an APY of up to 2%.
Such developments are part of a broader strategy to intensify long-term investor commitment, as holders deposit assets to earn fixed income. This reduces the tendency to sell compared to keeping assets on exchanges.
Institutional adoption has also played a role. DeFiLlama reports that Cyberpunk holds about 1.42% of ZEC’s total supply at the time of writing.
Increased institutional participation, along with positive investor sentiment from yield options, could limit circulating supply and contribute to higher demand.
Technical indicators provide insight into potential price direction. The Aroon indicator shows Aroon Up remaining above Aroon Down, suggesting that bulls are in control.
While Aroon Up remains below 70%, as of writing, it indicates the market is bullish but moderately so.
Liquidity inflows were visible through the Money Flow Index (MFI), which sat at 65, well within the bullish zone (anything above 50).
A continued upward trend in MFI within this range, without exceeding the overbought threshold of 80, could reinforce the bullish outlook and support overall gains.
The potential for a bullish outcome remains strong following a breakout from a well-known bullish pattern, the symmetrical triangle.
The pattern shows price consolidating within a defined zone before a breakout. Breaching the upper resistance would indicate broader bullish movement.
Chart targets suggest ZEC could extend toward $750, its previous all-time high of the year. For now, the outlook remains strongly bullish, with ZEC holders likely to witness more upside in the short to near term.
